Iranian minister's signing economic recession letter - business decision, unrelated to security
Baku, Azerbaijan, Oct. 6
By Fatih Karimov - Trend: Signing a letter to President Hassan Rouhani by Iranian Defense Minister Hossein Dehqan on a looming economic recession had nothing to do with security concerns.
Iranian Industry Minister Mohammad Reza Nematzadeh said that the defense minister undersigned the letter because of the defense ministry's affiliated companies that are active in the capital market, Mehr news agency reported Oct. 6.
"Many subsidiaries of the defense ministry and some of companies which are affiliated to the armed forces are active in the stock market," Nematzadeh said.
There were already some speculations that signing of the defense minister shows security concerns regarding the issue.
Four Iranian ministers have warned Rouhani of a recession in the capital market.
The ministers of economy, industry, labor, and defense have sent a joint letter to Rouhani, criticizing some uncoordinated policies and decisions by different bodies, warning that it may be led to a crisis in the capital market if a 'prompt corrective measure' is not taken.
International Monetary Fund (IMF) says the agreement on Iran's nuclear program and the envisaged lifting of economic sanctions bring a unique opportunity to build on and broaden the achievements of the past two years.
According to IMF, Iran's economy may have contracted during the first half of current fiscal year (started on March 21), and as a result, real GDP growth is projected to decline from 3 percent in 2014/15 to somewhere between 0.5 to -0.5 percent in 2015/16, depending on the exact timing of the expected lifting of sanctions.
"Twelve-month (point-to-point) inflation has declined to around 12 percent in recent months, largely reflecting lower food and beverage inflation, and the inflation rate is expected to remain close to 14 percent by year-end".
Edited by CN